## What is MAPE?

**Mean Absolute Percentage Error**, also called **MAPE** is commonly used to measure the performance of time series forecasting. As the name denotes, **Mean Absolute Percentage Error** **is the mean of absolute percentage error in forecasting** where error is the difference between the actual value and the forecasted value.

## MAPE Formula

Below is the formula for Mean Absolute Percentage Error:

where,

**n**= sample size**actual**= actual value**forecast**= the forecasted value

The lower the MAPE, the better the model’s ability to forecast the values.

## Advantages of MAPE

- It cancels out the effect of positive and negative errors.
- It is easy to understand as the error is in terms of percentage. For eg, 5% MAPE means that the average distance between the actual and forecasted value is 5%.

## Points to Note

- MAPE shouldn’t be used for small data.
- The value of MAPE will be 0 if the actual value is not available.